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Title 42, The Public Health and WelfareRelease 119-73not60

§291m–1 Loans for Certain Hospital Experimentation Projects

Title 42 › Chapter 6A— PUBLIC HEALTH SERVICE › Subchapter IV— CONSTRUCTION AND MODERNIZATION OF HOSPITALS AND OTHER MEDICAL FACILITIES › Part D— General Provisions › § 291m–1

Last updated Apr 5, 2026|Official source

Summary

The Secretary can make loans to people or groups who got a grant under the earlier law (the version of section 291n in effect before August 18, 1964) to build an experimental or demonstration hospital facility meant to test new ways to cut hospital costs, if the project’s construction costs went up a lot through no fault of the grantee. Each loan can pay up to 66 2/3% of the extra costs, as the Secretary decides, but only if the grantee cannot get that money from other public or private sources. Applicants must apply to the Secretary using the form and information he requires. Loans will carry 2.5% interest on the unpaid balance and must be repaid in a period the Secretary sets, but not longer than 50 years; $3,500,000 is authorized to carry out these loans.

Full Legal Text

Title 42, §291m–1

The Public Health and Welfare, Source: USLM XML via OLRC

(a)In order to alleviate hardship on any recipient of a grant under section 291n 11 See References in Text note below. of this title (as in effect immediately before August 18, 1964) for a project for the construction of an experimental or demonstration facility having as its specific purpose the application of novel means for the reduction of hospital costs with respect to which there has been a substantial increase in the cost of such construction (over the estimated cost of such project on the basis of which such grant was made) through no fault of such recipient, the Secretary is authorized to make a loan to such recipient not exceeding 66⅔ per centum of such increased costs, as determined by the Secretary, if the Secretary determines that such recipient is unable to obtain such an amount for such purpose from other public or private sources.
(b)Any such loan shall be made only on the basis of an application submitted to the Secretary in such form and containing such information and assurances as he may prescribe.
(c)Each such loan shall bear interest at the rate of 2½ per centum per annum on the unpaid balance thereof and shall be repayable over a period determined by the Secretary to be appropriate, but not exceeding fifty years.
(d)There are hereby authorized to be appropriated $3,500,000 to carry out the provisions of this section.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 291n of this title, referred to in subsec. (a), was repealed by Pub. L. 90–174, § 3(b)(1), Dec. 5, 1967, 81 Stat. 535.

Reference

Citations & Metadata

Citation

42 U.S.C. § 291m–1

Title 42, The Public Health and Welfare

Last Updated

Apr 5, 2026

Release point: 119-73not60